India’s coal-based power plants were provided an extended relaxation as lower generation schedule further curtailed their fuel requirements thereby negating fears of coal shortage in the country.
Power generation by coal-based plants fell to a 5-month low of 88.28 billion unit (BU) in August 2022, which also recorded a minor fall y-o-y against 89.6 BU in August 2021. Notably, this was the first time that generation volume fell on y-o-y basis since January 2022.
The coal-based plants have been pivotal in catering to the elevated power demand this year. This was further boosted by higher-than-usual temperatures recorded in summer when the peak demand touched record highs.
However, the onset of monsoon gradually eased the burden on these plants due to a steady decline in power generation.
This helped in improving the depleted inventory levels at the plants reeling under pressure due to inadequate coal supply. Towards the end of August, the plants accumulated 29.04 mnt of inventory, which was 72% higher than year-ago levels.
Support from hydro stations
Led by excessive rains across the country, the hydro stations saw record power generation of 23.4 BU in August, which was 15% higher on the year from 20.27 BU in August 2021.
As a result, the share of hydro power in the total conventional energy mix improved from 17% in August 2021 to 19% in August this year. In this period, the share of coal-based power dropped from 74% to 73%.
In addition, nuclear plants also recorded an uptick in power generation during the month, thereby compensating for the loss in generation from other thermal power sources such as lignite, gas and diesel-based plants.
Source-wise Conventional Power Generation
Quantity in BU | Others include diesel, gas and lignite plants.
On the top of this, subdued power consumption in August also extended support to the coal-based plants.
As per Power Ministry data, consumption grew marginally by nearly 2% y-o-y to 130.35 BU in August. However, the peak power demand met in August, which was the highest supply in a day, dipped to 194.94 gigawatt (GW). The same stood at 196.27 GW in August 2021.
Power consumption is expected to grow in view of the resumption in economic activities and upcoming festive season. Nevertheless, higher availability from hydro plants and improved coal supply post monsoon are expected to cushion the coal-based plants in case of any abnormal rise in demand.
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